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Abstract

The Latin American Integrated Market (Mercado Integrado Latinoamericano [MILA]) began to operate in May 2011. It was composed of the stock exchanges of Santiago, Colombia, and Lima, as well as of their respective securities depositories. In addition, the Mexican stock exchange and its securities depository were officially incorporated into the MILA in December 2014.

The MILA was created to take advantage of the synergies of each country and achieve a joint financial development beyond geographical limits.

This article analyzed the impact of the MILA in the development of the Peruvian securities market, and studied the main characteristics of the Peruvian stock market: the depth, access, efficiency and stability, before and after this market became a member of the MILA. The study concluded that this membership did not have a significant impact on the Peruvian capital market.

Moreover, the paper analyzed the Peruvian regulatory failures that do not allow the Peruvian capital market to take advantages of being part of the MILA. Finally, the study proposed that the definition of integrated market should not be limited to intermediate routing in order to expand the range of possible investments, and that the tax levied on the securities depositories be eliminated, in such a way that potential international participants find a tax incentive, which encourages investment in the Peruvian stock market.